In the Long Run, _____ the Level of Output Produced

question 35

Multiple Choice

In the long run, _____ the level of output produced in an economy.

• A) the production possibility frontier does not have any impact on
• B) the level of in?ation determines
• C) nominal wages determine
• D) neither price nor wages have any impact on

---

Definitions:

Expected Price Level

The anticipated average price of goods and services in an economy at a future time, influencing consumer and business decisions.

Short-Run Aggregate Supply Curve

A graphical representation showing how the total production of goods and services in an economy varies with changes in the price level in the short term.

Actual Price Level

The current index of prices for goods and services in an economy, reflecting the purchasing power of money at a specific point in time.

Long Run

A period in economics in which all factors of production and costs are variable, allowing full adjustment to changes.